Tap That: Investors Score With Gold, Silver Mines in Argentina

Foreign investors like Troy Resources are tapping abundant mineral deposits in San Juan Province.

Casposo, a gold and silver mine in Argentina’s San Juan province is on the fast track toward producing its first gold in September, less than a year after initial excavation commenced. The news was the highlight of Troy Resources (ASX:TRY) quarterly earnings call earlier today.

Australia-based Troy is an aggressive mid-tier gold producer with South American mining operations in Argentina and Brazil. Troy purchased the Casposo project in May 2009, delivered an encouraging resource estimate in July and received board approval to move forward in August.

While the company lowered full-year production estimates for their Brazilian project, Andorinhas, the progress at Casposo was described by CEO Paul Benson as “the highlight for this quarter.” According to Mining Weekly, “Troy estimated that the Casposo project hosted an indicated mineral resource of more than 2.3 million tons, grading at 5.4 grams/ton gold and 201.7 grams/ton silver.”

The company’s indicated resources for the mine are 414,600 oz gold and 15.3MM oz silver, and the block model above indicates the depth and quality of the resources at Casposo. Troy anticipates the project will produce its first gold in September, which is good timing considering the planned cessation of operations later this year at the company’s Australian mine, Sandstone.

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